FSA ASSIGNMENT COMPANY ANALYSIS

Submitted to, Prof. Sunil Kumar A.L

Submitted by, Anoon P Basil Raj 1220210 3 MBA-C

Company Analysis

Profile
Mindtree Ltd. was incorporated as MindTree Consulting Pvt. Ltd. on 5 August 1999. It was converted into a public limited company on 27 September 2006. The company's name was changed to Mindtree Ltd. on 6 November 2006 after receiving a fresh certificate of incorporation from the Registrar of Companies. The company's registered office is at Global Village in Mysore Road, Bangalore, Karnataka. The equity shares of the company was listed on the Bombay Stock Exchange (BSE) and on National Stock Exchange (NSE) on 7 March 2007. The company was promoted by ten professionals, Ashok Soota, Subroto Bagchi, N Krishnakumar, S Janakiraman, N S Parthasarathy, Rostow Ravanan, Kalyan Kumar Banerjee, Anjan Lahiri, Scott Staples and Kamran Ozair. N Krishnakumar is the Managing Director & CEO, Subroto Bagchi and S Janakiraman are Executive Directors in the company. Ashok Soota exited from the company's Board of Directors on 31 March 2011. The company provides information technology (IT) and research & development (R&D) services. It delivers business and technology solutions through software development. The organisation functions through two different divisions - IT Services and R&D services. IT jobs include services like IT strategic consulting, application development, data warehousing and business intelligence, application maintenance, package implementation and application product engineering services. R&D services operates through two divisions - engineering & research. Engineering division provides product realisation services to technology and product firms including product architecture and product design, product re-engineering and product assurance. The research division conceives and develops intellectual property primarily in short range wireless communication segment and licences & customises such intellectual property.

The engineering business unit serves clients in industries like consumer appliances, storage, computing systems, communications infrastructure and communications terminals. IT services and R&D services both follow two practices like testing practice and infrastructure management and technical support (IMTS). Testing provides services like testing of CoE, test consulting, test automation, performance test and specialised testing. Under IMTS services offered are consulting & implementation, management services, security services and technical support.

Ownership Pattern

Individuals & HUF Corporate Bodies Others Mutual Funds/UTI Insurance Companies Central & State Government Venture Capital Funds Others Corporate Bodies Nominal invest. Upto Rs. 1 lakh Others

Central & State Govt. FIs & Banks Institutions Banks, FIs,Insurance Cos. Financial Institutions & Banks FIIs Foreign Venture Capital Non-institutions Individuals Nominal invest. Over Rs. 1 lakh

Ownership of Equity Shares & Number of Owners

Mindtree Ltd.
Shares Held Sep-12 (Nos.) (% of Total) 100 19.47 15.94 15.37 Demat shares (Nos.) 40,788,522 7,969,408 6,523,745 6,291,245 Holders (Nos.) 53,320 9 8 6 (Nos.) (% of Holding) Pledged shares

Total Shares Promoters

Indian Individuals & HUF Central & State Govt. Corporate Bodies FIs & Banks Others Foreign Individuals(NRIs) Corporate Bodies Institutions Others Persons acting in concert

40,924,556 7,969,408 6,523,745 6,291,245

232,500 1,445,663 1,445,663

0.57 3.53 3.53

232,500 1,445,663 1,445,663

2 1 1

Non-promoters
Institutions Mutual Funds/UTI Banks, FIs,Insurance Cos. Insurance Companies Financial Institutions & Banks Central & State Government FIIs Venture Capital Funds Foreign Venture Capital Others Non-institutions Corporate Bodies Individuals Nominal invest. upto Rs. 1 lakh Nominal invest. over Rs. 1 lakh Others

32,955,148 13,510,874 3,482,960 514,679 514,679 9,513,235

80.53 33.01 8.51 1.26 1.26 23.25

32,819,114 13,510,874 3,482,960 514,679 514,679 9,513,235

53,311 105 31 5 5 69

19,444,274 12,340,013 6,438,221 3,421,895 3,016,326 666,040

47.51 30.15 15.73 8.36 7.37 1.62

19,308,240 12,340,013 6,330,566 3,327,465 3,003,101 637,661

53,206 635 51,690 51,632 58 881

Shares held by Custodians

Capital History Summary

Mindtree Ltd.
(Rs. Million) Issue date 16-Oct12 17-Sep12 14-Aug12 17-Jul12 15-Jun12 15-May12 17-Apr12 16-Mar12 16-Feb12 16-Jan12 16-Dec11 15-Nov11 17-Oct11 15-Sep11 16-Aug11 15-Jul11 15-Jun11 16-May11 15-Apr11 15-Mar11 15-Feb11 17-Jan11 15-Dec10 10-Dec10 15-Nov10 Security type Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares 7 23,300 Capital targeted to be raised 19.5 29.1 25.9 17.7 15.2 26.6 8.2 8.3 6 3 4.4 44.1 14.9 11.3 21.4 5.8 6.9 6.5 11.6 18.9 13.7 10.8 9.8 Securities issued (nos.) 56,312 85,674 88,252 52,665 45,239 79,333 29,470 29,799 19,035 11,742 15,245 147,352 53,194 38,207 80,041 21,693 21,954 27,207 43,267 73,434 46,555 41,037 43,310 Outstanding shares (nos.) 40,980,868 40,924,556 40,838,882 40,750,630 40,697,965 40,652,726 40,573,393 40,543,923 40,514,124 40,495,089 40,483,347 40,468,102 40,320,750 40,267,556 40,229,349 40,149,308 40,127,615 40,105,661 40,078,454 40,035,187 39,961,753 39,915,198 39,874,161 39,830,851 39,830,851 Outstanding paid-up capital 409.8 409.2 408.3 407.5 406.9 406.5 405.7 405.4 405.1 404.9 404.8 404.6 403.2 402.6 402.2 401.4 401.2 401 400.7 400.3 399.6 399.1 398.7 398.3 398.3

Issue type ESOP ESOP ESOP ESOP ESOP ESOP ESOP ESOP ESOP ESOP ESOP ESOP ESOP ESOP ESOP ESOP ESOP ESOP ESOP ESOP ESOP ESOP ESOP PostAmalgamation ESOP

15-Oct10 15-Sep10 16-Aug10 15-Jul10 15-Jun10 14-May10 19-Apr10 5-Apr10 15-Feb10 15-Jan10 15-Dec09 16-Nov09 22-Oct09 30-Sep09 14-Sep09 17-Jul09 23-Jun09 23-Jun09 12-Jun09 20-Apr09 5-Mar09

ESOP ESOP ESOP ESOP ESOP ESOP ESOP ESOP ESOP ESOP ESOP ESOP ESOP ESOP ESOP ESOP Reduction Of Equity PostAmalgamation ESOP ESOP ESOP

Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares Equity shares

8.7 9.8 7.3 14.9 13.8 10.7 13.4 0.5 18.5 12.2 10.2 5.4 6.6 0.3 10.1 0.1

35,226 35,492 30,158 54,255 50,600 41,308 45,518 59,946 66,643 56,197 75,601 37,378 31,470 36,722 29,624 11,174

39,807,551 39,772,325 39,736,833 39,706,675 39,652,420 39,601,820 39,560,512 39,514,994 39,455,048 39,388,405 39,332,208 39,256,607 39,219,229 39,187,759 39,151,037 39,121,413 39,110,239

398 397.7 397.3 397 396.5 396 395.6 395.1 394.5 393.8 393.3 392.5 392.1 391.8 391.5 391.2 391.1 392.9 379.9 379.9 379.9

1,300,965 863 835 3,480

39,299,349 37,998,384 37,997,521 37,996,686

Profitability Ratios

Mindtree Ltd.
Currency: Rs. Million (Non-Annualised) Margins on income On total income PBDITA as % of total income PBT as % of total income PAT as % of total income Cash profit as % of total income On total income net of P&E PAT net of P&E as % of total inc net of P&E Cash profit net of P&E as % of total inc net of P&E On sales PBDITA net of P&E&OI&FI as % of sales Returns on investments On net worth PAT net of P&E as % of net worth PAT as % of net worth Cash profit as % of net worth On capital employed PAT net of P&E as % of capital employed PAT as % of capital employed On total assets PAT net of P&E as % of total assets excl reval PAT as % of total assets excl reval On GFA PBDITA net of P&E&OI&FI as % of GFA excl reval PAT net of P&E as % of GFA excl reval PAT as % of GFA excl reval On NFA PBDITA net of P&E&OI&FI as % of NFA excl reval PAT net of P&E as % of NFA excl reval PAT as % of NFA excl reval

Mar-07 12 mths

Mar-08 12 mths

Mar-09 12 mths

Mar-10 12 mths

Mar-11 12 mths

Mar-12 12 mths

19.8 15 15.1 18.4

20.4 14.8 13.7 17.5

27.6 3.2 2.9 7

24.3 18.7 15.8 20.8

14.4 9.8 7.9 12.4

17 13.4 11.2 13.3

15.1 18.4

13.5 17.6

2.8 6.8

15.6 20.8

7.9 12.4

11 13.3

18.8

17.3

27

19.3

11.8

15.3

31.9 31.9 38.9

21.3 21.5 27.6

5.3 5.6 13.4

34.7 35.4 46.5

17.2 17.3 27.2

24.8 25.2 30

27 27

19 19.2

4.3 4.6

30.7 31.3

17 17.1

23.8 24.2

20.7 20.6

15.3 15.5

3.3 3.5

21.4 21.9

12.5 12.5

18.2 18.6

96.3 78.2 78.1

52.3 42.6 43

74.4 7.7 8.2

56.6 48.6 49.5

35.1 24.2 24.3

51.3 37.6 38.2

239.1 194.2 194.1

86.6 70.5 71.3

115.3 11.9 12.6

96.3 82.7 84.3

64.2 44.2 44.4

104.8 76.8 78.1

Analysis
The profit of the company has increased about 8 times during the five years. However, the Consulting division contribute only 3.1 per cent to the company's total revenues. The company's bulk of revenues flow from the software segment, which accounts for over 96 per cent of the company's total sales. The Shareholding pattern of the company is stable for all the five years. The promoters hold more than 50% of the stock which retains their decision making power. The plant of the company are located in different regions of India, which maks the company to easily cater the demand in a particular region from the nearest plant. Recently, V G Sidhartha of Caf Coffee Day Acquired 27% in Mindtree Ltd. The Sales has been increased 3 times during the past five years and the Working Capital has been doubled during the five years.